The CEO of Zoom lays out its next big priority, after its first earnings report as a public company blows away Wall Street expectations
- Video conferencing startup Zoom reported its first earnings as a public company on Thursday, and it generated revenues of $122 million this past quarter - up 103% from this time last year.
- Its report handily beat Wall Street expectation, and its stock soared more than 10% after the bell.
- To keep growing, Zoom is betting on its new product Zoom Phone, as well as expanding international sales.
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Zoom reported its first-ever earnings as a public company on Thursday, and its stock skyrocketed over 10% after reporting revenues that smashed Wall Street's expectations.
Zoom generated revenues of $122 million, up 103% from this time during the previous year. Those figures handily beat Wall Street estimates.
Zoom now has over 58,000 customers, 86% more than this time last year, and 405 of them paid $100,000 in the past 12 months, the company said in its earnings report.
"If you look at the video collaboration and phone system, it's also a huge opportunity," Zoom CEO and founder Eric Yuan said on the earnings call. "As long as we don't lose focus, it will keep us busy for the next several years."
Here's what Zoom reported:
- Revenue: $122 million. Analysts were expecting $111.73 million.
- Earnings per share (adjusted): $0.03.
- Revenue (next quarter): $129 million to $130 million. Analysts had predicted $123.25 million.
- EPS (next quarter): $0.01 to $0.02.
Zoom sees promise for its new product Zoom Phone, although it says it's still too early to see results. Zoom Phone is a new cloud computing service from the company, which can replace old-fashioned corporate telephone systems. It integrates with the company's core video chat apps, such that customers can take voice and video calls from any device.
"When you see the phone system and look at the enterprise today, many people are still using old fashioned on-prem phone systems," Yuan said on the earnings call. "Zoom can truly help with that."
Zoom CFO Kelly Steckelberg said on the call that the company is now especially focused on international sales, and half of its new sales hires are international. She also said Zoom will keep its options open when it comes to possible acquisitions in the future.
"While we haven't been acquisitive historically, we will keep looking for companies that can elevate our company in terms of technology and personnel," Steckelberg said on the earnings call.
Zoom went public on April 18, and it soared 81% in its trading debut.
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